- Meritech, Greylock lead funding round; they’re joined by new best-in-class investors including DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia and others
- Drake and his company DreamCrew are investors in the round, as well as Canadian actors Ryan Reynolds and Michael J. Fox, and athletes Kelly Olynyk, Dwight Powell, and Patrick Marleau, are participating in the investment round
- Wealthsimple will use new capital to expand market position, build out product suite, and grow its team
TORONTO, May 3, 2021 /CNW/ – Wealthsimple, the company behind some of Canada’s leading digital financial products, today announced it has signed a CAD $750 million financing round at a post-money valuation of CAD $5 billion. The round is led by Meritech and Greylock. DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, Plus Capital and others, plus celebrities Drake, Michael J. Fox, Ryan Reynolds, Kelly Olynyk, Dwight Powell, and Patrick Marleau are participating in the round. Concurrent with the funding, Meritech will appoint Max Motschwiller to the Wealthsimple board of directors.
Wealthsimple has revolutionized how Canadians interact with their finances by bringing smart, simple, online financial products to market. The new investment comes during Wealthsimple’s biggest period of growth to date in its seven years in business. Wealthsimple Trade, Canada’s first commission-free stock trading platform, has experienced rapid growth in the past 14 months as Canadians became increasingly interested in stock trading during the pandemic. The company launched Wealthsimple Crypto in August 2020, which allows users to securely buy, sell and hold cryptocurrency assets using a simple mobile app, and Wealthsimple Cash, a peer-to-peer money transfers app, in early 2021.
Wealthsimple also offers automated investing, saving and spending, and tax filing. The company will use the new capital to further expand its market position, build out its product suite, and grow its team.
“The financial services industry is in the midst of a massive transformation, and our continued growth, and the interest from some of the world’s leading investors, proves that Wealthsimple is poised at the leading edge of that transformation in Canada,” said Mike Katchen, co-founder and CEO, Wealthsimple. “More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better. This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives.”
“We invest in companies with the potential to revolutionize industries and become enduring market leaders,” said Max Motschwiller, General Partner, Meritech. “Wealthsimple has been able to capture a generation of financial consumers in Canada with financial products that are markedly different than anything offered by the incumbents — simpler, more human, and built with the kind of technology that delivers an experience consumers want.”
“Wealthsimple has created a compelling lineup of financial products that delight users, resulting in rapid client growth and highly satisfied customers,” said David Thacker, Partner at Greylock. “The company has assembled an incredible team that is passionate about the mission of helping Canadians achieve financial freedom. We are thrilled to double down on our investment and be part of their journey.”
In October 2020, Wealthsimple raised CAD $114 million at a $1.5 billion post-money valuation. Meritech is a growth-stage venture capital firm that has partnered with over 200 companies globally. Greylock is a longstanding venture capital firm that has partnered with over 180 companies through IPO. The last time Meritech and Greylock co-led a funding round was the Facebook Series B in 2006.